The Central Bank of Nigeria has withdrawn the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
The apex bank’s decision effectively removes both institutions from the country’s financial system as they are no longer permitted to carry out banking or mortgage-related operations.
The move forms part of the CBN’s broader effort to strengthen regulatory discipline, enforce prudential standards, and safeguard the stability of the financial sector.
According to regulatory disclosures, the licence withdrawals followed prolonged supervisory concerns around the financial condition and regulatory standing of the two mortgage lenders.
The CBN has, in recent years, intensified its oversight of primary mortgage banks, placing particular emphasis on capital adequacy, asset quality, liquidity management, and corporate governance.
With the revocation of their licences, Aso Savings and Union Homes have been placed under liquidation, with the Nigeria Deposit Insurance Corporation stepping in as liquidator in line with existing banking laws.
The NDIC is expected to commence the process of deposit verification and repayment of insured deposits to eligible customers, while pursuing asset recovery to settle outstanding obligations.
The development underscores the CBN’s increasingly firm stance on compliance across Nigeria’s financial system, particularly within specialised banking institutions.
Regulators have consistently signalled that institutions unable to meet minimum regulatory requirements or align with supervisory directives will face decisive sanctions, including licence withdrawal.
For the mortgage banking industry, the action highlights ongoing structural challenges within the sector and reinforces the need for stronger capital buffers, improved risk management, and sustainable business models.
Market participants are expected to closely watch how the liquidation process unfolds and whether further regulatory actions emerge as the CBN continues its sector-wide review.